Australia’s  largest  gas  infrastructure  business  APA  Group  (ASX:APA)  has  agreed to  acquire  a  further  16.7  per cent  of  the  SEA  Gas  Pipeline  from  International Power  for  $46.3  million.  

In  June  2007  APA  acquired  a  one  third  interest  in  the  SEA  Gas  Pipeline  from Origin  Energy.   APA  has exercised  its  pre‐emptive  right  over  part  of International  Power’s  interest,  and  with  this  acquisition  APA’s overall  interest  in the  pipeline  will  increase  to  50  percent.   APA  also  provides  field  operations and maintenance  services  to  the  asset.  

Financial  close  is  anticipated  before  the  end  of  2010.  

The  680  km  SEA  Gas  Pipeline,  commissioned  in  2004,  provides  a  key  gas transmission  link  between  Victoria and  South  Australia.   APA’s  increased interest in  the  pipeline,  together  with  the  provision  of  operating  and maintenance services,  is  in  line  with  APA’s  strategy  of  owning,  operating  and  managing energy  infrastructure assets  in  Australia.